Food prices will rise 3-4% in 2008, predicted the U.S. Department of Agriculture’s chief economist Joseph Glauber yesterday. Should his prediction come true, that would spell a whopping 8% inflation rate for food since January 2007.
"While the ethanol boom can be expected to bring higher incomes to farmers and reduce government outlays for farm programs," Glauber suggested at the USDA annual outlook conference, “it will also contribute to higher crop and livestock prices… Overall retail food prices for 2008-2010 are expected to rise faster than the general inflation rate."
"There's going to be real food inflation in this country," added C. Larry Pope, CEO of Smithfield Foods. "I think we need to tell the American consumer that things are going up. We're seeing cost increases that we've never seen in our business."
Ahh… Inflation, the hidden tax, continuing in a grocery store near you.
"While the ethanol boom can be expected to bring higher incomes to farmers and reduce government outlays for farm programs," Glauber suggested at the USDA annual outlook conference, “it will also contribute to higher crop and livestock prices… Overall retail food prices for 2008-2010 are expected to rise faster than the general inflation rate."
"There's going to be real food inflation in this country," added C. Larry Pope, CEO of Smithfield Foods. "I think we need to tell the American consumer that things are going up. We're seeing cost increases that we've never seen in our business."
Ahh… Inflation, the hidden tax, continuing in a grocery store near you.
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